Not A Happy New Year! These 70 Stocks Plunged Over 25% In 2022

By Author: Ricky Kirpalani
Total Articles: 24
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New Delhi: 2022 has not started a happy note for equity investors, at least not yet. Investors looking for multibagger in midcap and smallcap stocks have been the victims of Dalal Street volatility.

Of the nearly 1,000 companies on the BSE Midcap and Smallcap Index, more than 70 stocks have fallen more than 25 percent so far this year, with 20 losing one-third of their assets in the new year.

The BSE Midcap Index is down more than 6 percent so far in 2022, while the BSE Smallcap Index is down more than 9 percent. The benchmark and BSE barometer Sensex has fallen less than 3 percent so far this year.

Bikash Jain, senior research analyst at Reliance Securities, said markets have been in a corrective mode since the start of the earnings season in the second week of January. India Inc. has witnessed a mixed bag of income.

“Price correction has accelerated after the number of results, declining earnings, global negative news flow, high interest rates and geopolitical concerns have added correction mode to high beta stocks very sharply,” he added.

Among the second tier stocks, Metropolis Healthcare ...
... fell the most, falling nearly 41 percent to Rs 2,031.1 from closing at 3439.55 on 22 February 2021.

This is followed by Yari Digital Integrated Services and GE Power India, which are down 40 per cent each. GE Power India is down 39 percent, while Tech Solutions and Jubilant Industries are down 38 percent so far in 2022.

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Tata Teleservices (Maharashtra), Mahindra Logistics, Stove Craft, Mahanagar Telephone Nigam, Starlight Technologies, R Systems International, Genser Technologies and Himatsinka Seed are among the stocks that lost at least 35 percent.

Other companies that lost one-third of their assets include Venus Remedies, Ramco Systems, FirstSource Solutions, Subex, GE T&D India and GNA Excels, which fell more than 33 percent during the period under review.

As many as 765 elements of the BSE Mid and Smallcap index have disappointed investors with negative returns, while others have been able to hold their profits this year.

However, some analysts see profit booking as the main reason for the correction in these stocks after strong performance in the last few months.

Ricky Kirpalani, chief sponsor of First Water Capital Fund (AIF), says that after 2021, which is strong for mid and smallcaps, investors are starting to look for reasons to take some money off the table, leading to a decent correction.

He said healthy inflation is weighing on their counters in the Federal Reserve’s sharp commentary, rich assessments with global concerns such as inflation concerns and geopolitical concerns.

The correction of some stocks is due to the underlying fundamentals of the company and its resilience to bounce back after the Covid disaster, says Valpro director Neha Khanna – a technology-based investment banking platform.

He added that the drop in prices was due to the fact that such valuations were streamlined by the market. “This can also be seen in contrast to firms with consistent compounding performance as shown in recent Q3 results.”

Not all mid and smallcap assets are destructive because at least a dozen of them jumped more than 35 percent in 2022, DB Real is a multibagger. Smallcap real estate players grew by about 108 percent.

Gujarat Mineral Development Corporation (up 76 per cent), Khaitan Chemicals (up 50 per cent) and Sharda Cropchem (up 45 per cent) have rewarded investors.

Other winners in the segment include Vishnu Chemicals, Deepak Fertilizers, Orient Bell, Nahar Poly Films, TCPL Packaging, Jindal Drilling and Industries, HSIL and Steel Exchange India.

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